Fundamental misunderstanding of the term "profit"
Posted: Wed Nov 30, 2016 6:05 pm
This is certainly obvious to all you Capitalism experts out there, but I feel like a complete idiot because I sat there looking at my cash dwindle while my corporation was supposedly profitable by many millions. This makes no sense to me. Profit is not revenue, it means I should be pocketing that much cash over the course of the year. I was 3 million or so to the good according to the "profit" at the bottom of the screen.
Nevertheless, despite the fact that my company was making money according to that number, my cash steadily decreased until I lost the game. In my mind, the only possible explanation is that some expenses are calculated "post-profit" which is preposterous on its face. If I want to know whether my company is making money, all factors of financial outflow need to be factored in. Otherwise that number is meaningless, and I have to spend time sorting through detailed financial charts to see whether or not my company is actually profitable, which, again, doesn't make any sense to me.
Can someone please help remove my ignorance? I fail to see how I can play this game if I don't understand what they mean by "profit" in this case. Many thanks for your assistance!
Nevertheless, despite the fact that my company was making money according to that number, my cash steadily decreased until I lost the game. In my mind, the only possible explanation is that some expenses are calculated "post-profit" which is preposterous on its face. If I want to know whether my company is making money, all factors of financial outflow need to be factored in. Otherwise that number is meaningless, and I have to spend time sorting through detailed financial charts to see whether or not my company is actually profitable, which, again, doesn't make any sense to me.
Can someone please help remove my ignorance? I fail to see how I can play this game if I don't understand what they mean by "profit" in this case. Many thanks for your assistance!